Organovo Holdings (NASDAQ: ONVO) shares skyrocketed over 300% in midday trading Tuesday following a blockbuster announcement. The clinical-stage biotech revealed that Eli Lilly and Company (NYSE: LLY) will acquire its FXR program, including its lead asset, FXR314, sending investors into a frenzy.
“This is a significant milestone for our efforts to advance medicines for IBD using insights from our proprietary 3D human tissue models,” said Keith Murphy, Executive Chairman. “We are excited to deliver FXR314 and our FXR program to Lilly for Phase 2 and further development. Their world-class development excellence and dedication to delivering for patients will provide an excellent pathway for FXR314 success, and we are pleased to have this opportunity to deliver for patients.”
Under the agreement, Lilly scoops up all commercial and intellectual property rights to the FXR program for global development. In return, Organovo will receive an upfront payment—though the exact amount remains undisclosed. The company also stands to pocket additional milestone payments as FXR314 progresses through key regulatory approvals and commercial achievements.
